Keras Resources Share Discussion Threads

[rec0very stock] 20/1/2021 00:58

I think it is worth recapping the history of the company.

When it was Ferrex it had the Gabon Iron Ore project which it came very close to doing a great deal with a major to complete exploration and provide cash to the company to fund other projects. The deal fell through as Iron ore prices crashed. It was put on ice and eventually binned.

It also had Togo Manganese, which has huge potential and is just held up by the licence, which has been imminent for years.

There were also a couple of South African projects which needed significant investment to get off the ground and might have done had Gabon gone through. These were always on ice and were binned

The BoD could have cut their losses at that point, but instead reinvented the company as Keras keeping Togo on ice trying to progress the licence, but not banking on it. Instead they moved into Aussie gold. The first attempt was low CAPEX short term cashflow generation tribute mining. The BoD did what they said they would but a combination of low gold price, grades not being as good as they had been led to believe and overly onerous terms of the tribute meant that although gold was produced, it did not make money.

Again the BoD could have walked away, but instead started the Warrawoona project. Again they have done everything they said they would and spun out CAI on ASX and those of us who were in now have shares in that company which for me more than recoups my entire investment in FRX and KRS over the years and have potential to treble again at first gold, which is about 12 months away.

Whilst the prospect of the Togo licence has looked ever more promising, the BoD has not sat around waiting for it and instead found and funded Utah, which has an NPV on its own greater than the current MCap of KRS with enough resource to last for 60 years.

Mining is a high risk game. Jurisdictional problems, technical problems, commodity price cycles and ability to raise CAPEX all conspire to cause more projects to fail than succeed - that is the nature of the game. The KRS BoD all have track records which prove they can succeed, but they will inevitably have their failures too as that is the nature of the game. When listed on AIM the only strategy that does make any sense for a micro cap is to try to bolt together as many low CAPEX near term cash generative projects as possible. That is what the BoD is doing, backing it with their own money and they are delivering where it is in their power to deliver. They have shown that they will walk away from projects that have no realistic chance, unlike many AIM micro cap miners who are effectively flogging dead horses to continue to fund their lifestyles, but they have never given up on the company, having 3 times already breathed life back in with new projects.

Whilst the years I have been a shareholder here have been a roller coaster ride with many ups and downs, twists and turns with massive frustration that the Togo govt can't just sign a simple bit of paper which is as much in their interest to sign as it is ours, I have faith that we will all be grinning at the end.

[rec0very stock] 20/1/2021 00:05

jimbl,

You are right this is a discussion board and all considered views are welcome.

However it is my considered view that your analysis is flawed. The company has no immediate need for OPEX. The Utah investment is fully paid for and Falcon Isle has sufficient funding to meet its programme. The processing plant will be commissioned soon which will dramatically improve margins of what is a near term cash generative project as long as they can sell what they dig up and if they can't sell it what is the point of expending more OPEX digging more up. The area gets heavy snow in winter so all mining was completed before then (more than the original target) and there is product available for sale (more than originally planned). I am sure we will get an update on how that is going, but all the indications we have had so far are that marketing is going well with demand for a greater product range. The first use of cashflow generated will be to pay back the loan to KRS.

If the money was needed for Togo that would mean the licence really was imminent, however the logical thing to do would be to wait for the licence, see the shareprice increase and then raise, though it is my understanding that the money needed for Togo expansion is already arranged as debt awaiting issue of the licence. This raise now to me indicates that the Togo licence is not imminent and indeed may well be some way off.

Dilution over the years has been most painful here, but the BoD as major shareholders themselves have always done their best to minimise it.

My assumption, which I have no additional information to support other than my knowledge of the company and what the RNS says is that there is a deal in the offing which is too good to miss. Utah was secured by DR and RL putting in their own money, in return for that they took shares, their pockets are only so deep so they have tapped up the market to "provide us with significant leverage as we look to expand our project portfolio targeting additional low-capex and near-term production projects."

It will take a while for that deal to be done and it is possible that with money coming back as loan repayment from Utah, that can be used to fund the new project. I am as sure as I can be that there is something specific going on the details of which cannot be announced to the market yet - this is often the way and we had no idea RL had done the deal on Utah many months before it was announced.

Either way having just completed 2 significant raises "Unless Togo license comes through in the next couple of months, i think this company will go to the wall." really is not credible analysis. So whilst I welcome your contribution to the debate, as there is some degree of validity to some of your points, you do seem to always put the most negative spin on everything and by doing so you have moved beyond the bounds of credibility in exactly the same way that those who always put the most positive spin on everything do.

[jimbl] 19/1/2021 16:46

Its a discussion board. Pretty boring if you only want to listen to people who you agree with or hold your views. What has posting on any other stock got to do with being in this one?

[nico115] 19/1/2021 16:21

Does One listen to you who has never posted on another stock Or do we follow director share buying? Hmmmm

[jimbl] 19/1/2021 14:59

Actually, you missed off the beginning of that sentence. Complete, it reads "The funds being raised will enable the Directors to explore opportunities to grow the Company's current portfolio ...both through organic growth and by the potential introduction of new projects, as well as being used for general working capital purposes."
Togo can't grow without a license. New projects means more raising and dilution. No idea if Utah can return £1 mil a year as we've received no sales data other than the initial 20% of yr 1 stockpile.

[zhockey] 19/1/2021 14:37

With respect it was a poster on here who speculated the placing was for Opex. The RNS stated organic growth, new projects and working capital (Opex), in that order.

I suspect organic growth means bringing forward the expansion of production in Utah, which could give positive cash flow maybe £1M/year.

[jimbl] 19/1/2021 14:27

It's not ludicrous at all. This is the second raise in a month for opex (for what?), so clearly Diamond Creek is not expected to be able to pay its way until who knows when. There's no opex for Togo, unless the BOD is going to continue to expend funds on exploration while the Gov refuses to license our ready to mine Nayega.
Shares in issue, when the share price is 1/10th of penny, will certainly lead to an existential crisis if the BOD look to take on anymore non self sustaining projects. We'll be diluted out of existence.

[markyess] 19/1/2021 13:37

It is an absolutely ludicrous suggestion that we're in an existential threat. Diamond Creek alone would keep the wheels turning. The company is in FAR better shape than it was after the failed Aussie Tribute Mining and post Anglo America set back and yet it went on to spin out Calidus at multiples of the Keras MCAP. It absolutely faced an existential crisis at that point in time.

Shares in issue does not place a company in an existential crisis.

It's a frustrating period, but lets not be melodramatic.

[tomboyb] 19/1/2021 12:23

Placing at 0.115p so I've taken on a few more =

[zhockey] 19/1/2021 12:15

I don’t think they would have quite so much for tiding over.

"To further bolster our cash reserves at this time will also provide us with significant leverage as we look to expand our project portfolio targeting additional low-capex and near-term production projects."

[markyess] 19/1/2021 09:00

Unless someone (RS) can suggest differently, the wording of the RNS is pretty clear, there is NO imminent new project, this is a raise for OPEX, looking into new opportunities is part of the day job. The value of the raise might just about cover the acquisition of a neighbouring tenement in Togo or Utah, but would not be sufficient to acquire and commence exploration on a new value adding proposition.

Read between the lines. Togo is a while away.

Do yourself a favour and put this in the bottom drawer.

[jodalu] 18/1/2021 23:04

i don,t mind the discount but i get annoyed at not be able to get warrants

[ryan83] 18/1/2021 22:01

I added a fair bit today fingers crossed

[greatfull dead] 18/1/2021 18:40

Something positive in the offing. RL and DR don't raise money to pay themselves. The do it to finance potential new business opportunities.

They both have a keen eye for these. They have proved this already.

GLA,
GD

[tomboyb] 18/1/2021 17:55

Keras Resources plc
@kerasplc
·
7m
Ship containing processing plant for #DiamondCreek #Phosphate Mine is due to arrive in the US today before going through customs and setting off on the final leg of it's journey to Utah.

[tomboyb] 18/1/2021 16:14

MMs opened up -

Up stake around these levels -

[tomboyb] 18/1/2021 15:06

NT again at 0.125p -

Seem MMs will give stock once someone has sold -

Very little downside considering 0.115p placing -

[tomboyb] 18/1/2021 14:39

No stock to to buy at 0.125p -

I wonder who partook in the placing which was a small premium to the previous one -

[tomboyb] 18/1/2021 14:00

A small premium buy -

I think directors have bought in again so lets see what happens -

Fully funded however no idea what is in store -

[jimbl] 18/1/2021 13:49

More chance of it testing 0.0007 again than higher then current share price

[tomboyb] 18/1/2021 13:39

NT at 0.125p -

Lets see where it goes -

[zhockey] 18/1/2021 13:26

You’ll probably get a chance to buy close to that with two big placings in progress.

[tomboyb] 18/1/2021 13:25

don't think 0.125p will last too long -

[jodalu] 18/1/2021 13:24

why don't the them make an open offer so private investor can have the same deal?
it is very annoying when company keep doing this and after years of stick with it is very poor

[tomboyb] 18/1/2021 13:07

Directors buying more shares at £110k plus £50 in new placing -

Looks to me like a new project in the offering -